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Express Tribune
28-05-2025
- Business
- Express Tribune
Govt plans tax hikes, subsidy cuts under IMF-backed budget
Market analysts caution that IMF-related measures in the upcoming FY2026 budget—particularly new taxes and adjustments in energy prices—may lead to a renewed spike in inflation. PHOTO: FILE Listen to article The government is poised to unveil a tough federal budget for the fiscal year 2025-26, with sweeping reforms likely to trigger a new wave of inflation as the government looks to meet stringent demands set by the International Monetary Fund (IMF), sources claimed. According to Express News, Virtual talks between Pakistan's economic team and IMF officials are ongoing, focused on increasing tax revenues and narrowing the country's fiscal deficit. The measures being discussed include raising the sales tax on luxury goods above the current 25 per cent threshold and expanding the list of taxable items. "The government is seriously considering strict fiscal steps to meet IMF targets," a senior official involved in the discussions said. The IMF has called for greater transparency in the tax system, expanded use of technology to curb evasion, and more authority for tax enforcement agencies. In response, the government is reportedly planning a tenfold increase in penalties for tax evasion via point-of-sale (POS) systems — from Rs0.5 million to 5 million — and may introduce criminal proceedings for serious offenses. Read more: SAI urges tax reforms in budget proposals Also under review is the removal of tax exemptions across various sectors, including solar panels. Analysts warn such moves could stifle investment in renewable energy and burden households already grappling with rising costs. "The withdrawal of tax relief for solar products will deal a blow to clean energy efforts," said one energy sector analyst. Farmers, too, may be hit hard. The proposed budget includes an 18 per cent general sales tax on fertilizers, pesticides, and agricultural equipment, along with possible hikes in federal excise duties on agri-inputs, according to sources. Economic experts caution that these measures, if approved, will drive up inflation, hamper agricultural productivity, and worsen the cost-of-living crisis. 'These are painful but necessary steps,' an official said. 'The priority is to secure the IMF deal to prevent a deeper economic crisis.' The budget is set to be presented on June 10.
Express Tribune
21-05-2025
- Business
- Express Tribune
Govt to raise tax evasion fines to Rs5 million
The federal government has decided to increase fines in the upcoming budget in order to curb tax evasion among shopkeepers and businesses, Express News reported. During a meeting of the Senate Standing Committee on Finance on Wednesday, Federal Board of Revenue (FBR) officials briefed members that fines for shopkeepers who use to evade taxes, will be raised from Rs0.5 million to Rs5 million while also proposing a reward scheme for those who report fake receipts used to avoid taxes. According to the FBR, the upcoming budget will impose heavier penalties on retailers involved in tax evasion as the government aims to expand the number of retailers registered at points of sale, targeting seven million retailers. The FBR also proposed a reward scheme to incentivise reporting of fake receipts used to avoid tax payments, with informants eligible for cash prizes up to Rs10,000. Read more: IMF official visits amid budget talks Officials said monitoring will be strengthened by deploying cameras and additional staff at retail points. The upcoming budget will also focus on sectors such as poultry, tobacco, beverages, and sugar mills, where enhanced oversight has already led to increased tax collection. Meanwhile, Senate Finance Committee Chairman Saleem Mandviwala expressed concern over long delays in sales tax refunds, which exporters claim can take months instead of days. FBR officials said they are prioritising refunds for key export sectors including textiles, sports goods, carpets, leather, and surgical products, promising faster processing. To combat tax evasion, authorities said daily business closures and fines are being enforced in major cities including Lahore, Karachi, and Islamabad, with plans to raise fines and extend measures nationwide. Read more: Businessmen oppose tariff rationalisation A media campaign against fake receipts and tax evasion will be launched soon, with plans to involve university students to help monitor thousands of shops across the country, they added. The committee was informed that new higher fines could come into effect from July 2025. Officials said the current lower penalties have weakened enforcement efforts and the government will seek parliamentary approval for the increases.
Express Tribune
04-05-2025
- Express Tribune
Expensive public clock in shambles
A large clock built at a cost of millions of rupees near the Miyawaki Forest at Rialto Chowk on Murree Road in Rawalpindi stands completely broken. PHOTO: EXPRESS A decorative public clock, installed near the Miyawaki Forest at Rialto Chowk on Murree Road, is in ruins, with all its hands and battery stolen over a month ago. Despite the theft and vandalism, officials from the Rawalpindi Development Authority (RDA) and the Parks and Horticulture Authority (PHA) have taken no action. The clock, touted as a "game-changer beautification project" at its inauguration, was part of a costly landscape development aimed at enhancing the city's aesthetics. Built on uneven land designed in a hill-like style to make the clock visible from afar, the project cost hundreds of thousands of rupees. At the time of installation, senior officials, including the director generals of development authorities, announced plans to install similar clocks at other major intersections in Rawalpindi. However, no such initiatives have materialised since. Within just 30 days of installation, the clock was targeted by drug addicts and thieves, who removed all its components. Once a spot where passersby would stop to check the time, the broken structure now draws sarcastic smiles from citizens as they walk past. Interestingly, Commissioner Aamir Khattak and Deputy Commissioner Hasan Waqar Cheema regularly pass by the site but have reportedly issued no instructions to repair or remove the defunct structure. The project, which cost approximately Rs0.5 million, is now considered a financial loss. Sources say the RDA and PHA lack the funds to restore the clock and are searching for local philanthropists to sponsor the repairs. Officials told The Express Tribune that the theft has been documented and they hope to restore the clock soon. However, the culprits behind the theft remain unidentified.
Express Tribune
01-05-2025
- Express Tribune
Three convicted in murder cases, jailed for life
Session courts in Rawalpindi have announced verdicts in three separate murder cases, including the brutal double murder of a couple and the killing of a woman who was set on fire by her husband following a domestic dispute. In one of the most high-profile cases, Additional District and Sessions Judge Muhammad Azfar Khan sentenced convict Rafaqat to two counts of death penalty and imposed a fine of Rs1 million for the murder of Zafran and Rabia Bibi in the jurisdiction of Murree police station. The court ruled that Rafaqat be hanged until death for each murder. In another case, Additional District and Sessions Judge of Taxila handed down the death penalty to a man named Kashif for setting his wife on fire and killing her in cold blood over a domestic dispute. The court also ordered him to pay Rs0.3 million in compensation. The Wah Cantt police had registered the case in March 2021. Separately, the Sessions Judge sentenced Muhammad Younis to life imprisonment and a fine of Rs0.5 million for murdering a man named Jahanzeb over a land dispute in April 2021. The case was registered at Mandira police station. In a fourth case, Additional District and Sessions Judge in Gujar Khan sentenced convict Rashid to life imprisonment and Rs0.5 million in compensation for killing a man named Ashraf over a property dispute. The incident was reported in July 2023 at Gujar Khan police station. Following the sentencing, CPO Syed Khalid Hamdani commended the SSP Investigation along with the investigation and legal teams for their efforts. He emphasised that all necessary measures are being taken to ensure perpetrators of serious crimes like murder receive strict punishment and stated that such criminals do not deserve any leniency.
Express Tribune
18-04-2025
- Express Tribune
Man gets 27-year prison sentence for job scam
A special court of the Federal Investigation Agency (FIA) has sentenced a man to 27 years of rigorous imprisonment for defrauding a citizen of Rs4.66 million by promising him a government job. Special Judge Central FIA, Abdul Rehman Arif, also imposed a fine of Rs 2million on the convict, Qamar Zaman. The court further directed Zaman to compensate the complainant with Rs3.74 million. The FIA's Anti-Corruption Wing registered the case on September 30, 2020. Zaman, who worked as a government department driver, was convicted under multiple charges including seven years and Rs0.5 million fine under fraud charges, seven years and Rs0.5m fine under forgery charges, three years and Rs0.5m fine under bribery charges, 10 years and Rs0.5m fine for misuse of official position.
